IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v65y1989i3p234-239.html
   My bibliography  Save this article

Trade Unions in an Open Economy: A General Equilibrium Analysis

Author

Listed:
  • RICHARD A. BRECHER
  • NGO VAN LONG

Abstract

This paper derives a general equilibrium demand‐for‐labour schedule within the Heckscher‐Ohlin‐Samuelson model of a large open economy, and then introduces an economy‐wide labour union that maximizes its utility subject to this demand schedule, thereby determining the real wage and hence total employment A parametric shift's comparative‐static effects on the equilibrium levels of unemployment and welfare are analyzed within this fully unionized economy.

Suggested Citation

  • Richard A. Brecher & Ngo Van Long, 1989. "Trade Unions in an Open Economy: A General Equilibrium Analysis," The Economic Record, The Economic Society of Australia, vol. 65(3), pages 234-239, September.
    • Handle: RePEc:bla:ecorec:v:65:y:1989:i:3:p:234-239
    DOI: 10.1111/j.1475-4932.1989.tb00932.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.1989.tb00932.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4932.1989.tb00932.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Paul A. Samuelson, 1956. "Social Indifference Curves," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 1-22.
    2. Dow, James & da Costa Werlang, Sergio Ribeiro, 1988. "The consistency of welfare judgments with a representative consumer," Journal of Economic Theory, Elsevier, vol. 44(2), pages 269-280, April.
    3. Diewert, W E, 1974. "The Effects of Unionization on Wages and Employment: A General Equilibrium Analysis," Economic Inquiry, Western Economic Association International, vol. 12(3), pages 319-339, September.
    4. Richard A. Brecher, 1974. "Minimum Wage Rates and the Pure Theory of International Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 88(1), pages 98-116.
    5. Brecher, Richard A., 1974. "Optimal commercial policy for a minimum-wage economy," Journal of International Economics, Elsevier, vol. 4(2), pages 139-149, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Donald R. Davis & Trevor A. Reeve, 1997. "Human Capital, Unemployment, and Relative Wages in a Global Economy," NBER Working Papers 6133, National Bureau of Economic Research, Inc.
    2. Marianna Belloc, 2009. "International Specialization and Labor Unions: Evidence from OECD Countries," Review of International Economics, Wiley Blackwell, vol. 17(1), pages 34-50, February.
    3. Egger, Hartmut & Egger, Peter & Kreickemeier, Udo, 2013. "Trade, wages, and profits," European Economic Review, Elsevier, vol. 64(C), pages 332-350.
    4. Leahy, Dermot & Montagna, Catia, 2000. "Unionisation and Foreign Direct Investment: Challenging Conventional Wisdom?," Economic Journal, Royal Economic Society, vol. 110(462), pages 80-92, March.
    5. Aretz, Bodo & Busl, Claudia & Gürtzgen, Nicole & Hogrefe, Jan & Kappler, Marcus & Steffes, Susanne & Westerheide, Peter, 2009. "Endbericht zum Forschungsauftrag fe 13/08: "Ursachenanalyse der Verschiebung in der funktionalen Einkommensverteilung in Deutschland" (Aktenzeichen I A 3 - Vw 3170/08/10035)," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 110510, September.
    6. Leahy, Dermot & Montagna, Catia, 1999. "Unionisation and Foreign Direct Investment," CEPR Discussion Papers 2260, C.E.P.R. Discussion Papers.
    7. repec:dun:dpaper:97 is not listed on IDEAS
    8. Gaston, Noel & Trefler, Daniel, 1995. "Union wage sensitivity to trade and protection: Theory and evidence," Journal of International Economics, Elsevier, vol. 39(1-2), pages 1-25, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sgro, Pasquale M., 1983. "A Selective Review of Developments in International Trade Theory: Commercial Policy and Free Trade," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 51(01), pages 1-20, April.
    2. Schweinberger, Albert G., 2001. "Capital, heterogeneous labour, global goods markets and unemployment," Discussion Papers, Series I 309, University of Konstanz, Department of Economics.
    3. Kala Krishna & Abhiroop Mukhopadhyay & Cemile Yavas, 2005. "Trade with Labor Market Distortions and Heterogeneous Labor: Why Trade Can Hurt," Contributions to Economics, in: Günter S. Heiduk & Kar-yiu Wong (ed.), WTO and World Trade, pages 65-83, Springer.
    4. Maskus, Keith E., 1997. "Should core labor standards be imposed through international trade policy?," Policy Research Working Paper Series 1817, The World Bank.
    5. Chambers, Christopher P., 2012. "Inequality aversion and risk aversion," Journal of Economic Theory, Elsevier, vol. 147(4), pages 1642-1651.
    6. Vivek H. Dehejia & Yiagadeesen Samy, 2002. "Trade and Labour Standards - Theory, New Empirical Evidence, and Policy Implications," CESifo Working Paper Series 830, CESifo.
    7. Gan, Li & Hernandez, Manuel A. & Ma, Shuang, 2016. "The higher costs of doing business in China: Minimum wages and firms' export behavior," Journal of International Economics, Elsevier, vol. 100(C), pages 81-94.
    8. Mitra, Devashish & Ranjan, Priya, 2007. "Offshoring and Unemployment," IZA Discussion Papers 2805, Institute of Labor Economics (IZA).
    9. H. Dehejia, Vivek & Samy, Yiagadeesen, 2008. "Labor Standards and Economic Integration in the European Union: an Empirical Analysis," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 817-847.
    10. repec:spo:wpecon:info:hdl:2441/3201 is not listed on IDEAS
    11. Wisarut Suwanprasert, 2020. "Optimal trade policy, equilibrium unemployment, and labor market inefficiency," Review of International Economics, Wiley Blackwell, vol. 28(5), pages 1232-1268, November.
    12. Alejandro Cuñat & Marc J. Melitz, 2012. "Volatility, Labor Market Flexibility, And The Pattern Of Comparative Advantage," Journal of the European Economic Association, European Economic Association, vol. 10(2), pages 225-254, April.
    13. repec:elg:eechap:15325_12 is not listed on IDEAS
    14. Rod Tyers & William Coleman, 2008. "Beyond Brigden: Australia's Inter‐War Manufacturing Tariffs, Real Wages and Economic Size," The Economic Record, The Economic Society of Australia, vol. 84(264), pages 50-67, March.
    15. Bin Ni & Kyosuke Kurita, 2018. "The Minimum Wage, Exports, and Firm Performance: Evidence from Indonesia," Discussion Paper Series 171, School of Economics, Kwansei Gakuin University, revised Jan 2018.
    16. Kala Krishna & Cemile Yavas, 2002. "When Does Trade Hurt? Market, Transition and Developing Economies," NBER Working Papers 8995, National Bureau of Economic Research, Inc.
    17. Ni, Bin & Kurita, Kyosuke, 2020. "The minimum wage, exports, and firm performance: Evidence from Indonesia," Journal of Asian Economics, Elsevier, vol. 69(C).
    18. Xiaoping Li & Shuzhou Peng & Wei‐Chiao Huang & Qian Zhou, 2022. "What Drives Chinese Firms' Export Sophistication? A Perspective from the Rise of Minimum Wages," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(2), pages 28-59, March.
    19. Alejandro Cuñat & Marc J. Melitz, 2010. "A Many-Country, Many-Good Model of Labor Market Rigidities as a Source of Comparative Advantage," Journal of the European Economic Association, MIT Press, vol. 8(2-3), pages 434-441, 04-05.
    20. Krishna, Kala & Yavas, Cemile, 2005. "When trade hurts: Consumption indivisibilities and labor market distortions," Journal of International Economics, Elsevier, vol. 67(2), pages 413-427, December.
    21. Jagdish Bhagwati & Arvind Panagariya, 2004. "The Muddles over Outsourcing," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 93-114, Fall.
    22. Donald R. Davis, 1996. "Does European Unemployment Prop Up American Wages?," Harvard Institute of Economic Research Working Papers 1752, Harvard - Institute of Economic Research.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:65:y:1989:i:3:p:234-239. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.